Overview
- Savills reports a 4.8% decline in prime central London values in 2025, including a 0.9% fall in the fourth quarter, taking the drop to about 24.5% since the 2014 peak.
- Successive tax changes have raised purchase costs for wealthy and overseas buyers, with stamp duty on additional properties for non-UK residents reaching up to 19%—£863,750 on a £5 million home.
- The abolition of the non-domicile regime in April 2025 is linked to an estimated 1,800 departures of wealthy residents to destinations such as Dubai, Abu Dhabi, Milan, Monaco and Geneva.
- Beauchamp Estates says 65% of 2025 transactions above £15 million involved non-doms selling, with many replacement buyers purchasing properties for occasional holiday use.
- From 2028, homes worth £2 million or more face council tax increases of up to £7,500 a year under a new measure described as a mansion tax, which industry voices expect to further curb demand.